Favorite Schools

Favorite Teams

Keep credit scores out of job application process: Editorial

ga0604lautenberg x Kurdzuk.JPG

A Democratic-backed bill would ban credit checks by employers for employees and new hires, except when it's legally required or related to the job, such as finance and law enforcement.
(Tony Kurdzuk/The Star-Ledger)

It sounds like a bad joke: You’ve been out of work and, after missing a credit card payment or two, your credit rating has tanked. You finally score a job interview, but you’re rejected. Why? Bad credit.

A Democratic-backed bill would ban credit checks by employers for employees and new hires, except when it’s legally required or related to the job, such as finance and law enforcement. The measure awaits final passage in the Assembly when lawmakers return to Trenton this month. From there, it would head to Gov. Chris Christie’s desk. It’s a compassionate bill that deserves his signature.

Nearly half of employers check a job applicant’s credit report during the hiring process, one study shows. Business organizations, such as the New Jersey Business and Industry Association, say credit history is just one bit of information among many that employers consider when selecting the best candidates to hire. They’re not looking at your credit score — that’s too simplistic. Instead, they watch for red flags such as bankruptcies or tax liens.

Sure, federal law requires companies to ask your permission before they look at your credit history. But who’s going to say "no" when unemployment is so high and competition for jobs is cutthroat? And in that case, what’s to stop overzealous managers from overreaching and using credit scores to weed out applicants?

This bill gives the long-term unemployed a better shot at getting back on their feet by shielding them from the stigma of a credit history damaged by long-term unemployment.

New Jersey would become the 11th state to limit employers’ use of credit checks. The state already protects employees and applicants from social media intrusion, and lawmakers are debating a bill that limits the use of criminal records in hiring. At the federal level, Sen. Elizabeth Warren (D-Mass.) also introduced a bill last month to curtail employee credit checks.

Employers’ nosiness is understandable, but only to an extent. A diligent human resources manager wants to base hiring decisions on the most complete portrait possible. But workers deserve a chance to put their best foot forward. And if that means a sliver of their past remains beyond prospective employers’ reach, it’s a small price.

The Great Recession and chronic unemployment have stained the credit scores of millions. Tens of thousands of skilled, productive people have been out of work for months, or longer, through no fault of their own. They deserve an unbiased shot at employment.